On Tuesday at the 2026 Nigerian Economic Summit in Abuja, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) called on state governments to scrap right‑of‑way fees, arguing that such charges can account for up to 60 % of the total cost of laying fibre‑optic cable and discourage network expansion into poorly served communities.
Key points highlighted by ALTON included: the fee can rise to 50‑60 % of deployment costs per kilometre; the high expense makes it hard for operators to justify investment where revenue prospects are low; and removing the charge would lower overall costs, attract capital and help close Nigeria’s digital divide. "Today, the cost of right‑of‑way amounts to a significant part of the cost of fibre deployment," said ALTON Chairman Engr. Gbenga Adebayo, adding that in some states the fee can be as high as 60 % of the total infrastructure outlay.
Right‑of‑way charges are payments required to obtain permission to use public or private land, roads and other designated spaces for installing fibre‑optic cables and related telecom equipment. Adebayo noted that the approval process has become a major bottleneck, inflating project budgets and making it financially unviable to extend services to rural or low‑income areas.
"For every one kilometre of fibre that you deploy, in some of the states, the cost of right‑of‑way can be as high as 50 to 60 per cent of the cost of deploying the entire infrastructure," he said, urging legislators to enact laws that make right‑of‑way access free for telecom infrastructure, especially in regions where commercial returns are unlikely.
The chairman also suggested that the existing Universal Service Provision Fund (USPF) could be deployed more strategically to subsidise network roll‑out in underserved locations. By channeling USPF resources toward areas where deployment costs exceed expected revenue, the government could stimulate private sector participation without compromising fiscal sustainability.
Adebayo dismissed claims that telecom operators are unwilling to invest in rural communities, emphasizing that the barrier is primarily economic. He argued that appropriate incentives and targeted government support would resolve the issue, allowing operators to expand coverage without bearing prohibitive upfront costs.
Beyond coverage, the ALTON chief stressed the need for greater investment in fibre‑optic cables, site infrastructure and network capacity to improve service quality and ready Nigeria for emerging technologies. He highlighted that artificial intelligence (AI) relies not only on software and computing power but also on robust telecommunications infrastructure to handle large data volumes and ensure reliable connectivity.
In related developments, the Chairman of the Senate Committee on ICT and Cybersecurity, Senator Shuaib Salisu, announced that the National Digital Economy and E‑Government Bill had reached its third reading and is expected to pass before the end of 2026. Salisu also mentioned ongoing cybersecurity reforms and a review of the Data Protection Act aimed at strengthening Nigeria’s digital governance framework.
The senator highlighted the Federal Government’s planned 90,000‑kilometre fibre‑optic network as a cornerstone for extending connectivity to underserved communities and supporting broader digital services. He also pointed to the Three Million Technical Talent (3MTT) programme as a key initiative for building the skilled workforce required for a thriving digital economy.
Jimmy Mauldin, Chargé d’Affaires of the United States Mission in Abuja, used the summit platform to call for deeper investment partnerships between Nigeria and the United States. He identified digital infrastructure, energy, manufacturing, agriculture, critical minerals and financial services as sectors with high collaborative potential, noting that Nigeria’s youthful population, growing tech sector and strategic West African location make it an attractive destination for investors.
Mauldin cautioned that predictable policies, respect for contracts, efficient trade procedures and improved security are essential to maintain investor confidence. "Capital is mobile, and it’s also important to remember that capital is very selective," he said, adding that reliable electricity and safe communities are prerequisites for factories, fibre deployment and efficient supply chains.
The summit gathered government officials, business leaders, policymakers and development partners to explore investment opportunities, infrastructure development and strategies for accelerating Nigeria’s economic growth.